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APP vs. CIEN: A Head-to-Head Stock Comparison

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Here’s a clear look at APP and CIEN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolAPPCIEN
Company NameAppLovin CorporationCiena Corporation
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySoftwareCommunications Equipment
Market Capitalization152.44 billion USD12.83 billion USD
ExchangeNasdaqGSNYSE
Listing DateApril 15, 2021February 7, 1997
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of APP and CIEN by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

APP vs. CIEN: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAPPCIEN
5-Day Price Return9.23%2.22%
13-Week Price Return28.23%13.26%
26-Week Price Return-8.80%4.24%
52-Week Price Return406.38%67.11%
Month-to-Date Return15.35%-2.26%
Year-to-Date Return39.17%6.99%
10-Day Avg. Volume4.90M1.68M
3-Month Avg. Volume6.02M1.97M
3-Month Volatility57.14%40.69%
Beta2.481.06

Profitability

Return on Equity (TTM)

APP

257.74%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

APP’s Return on Equity of 257.74% is exceptionally high, placing it well beyond the typical range for the Software industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

CIEN

3.72%

Communications Equipment Industry

Max
32.05%
Q3
19.58%
Median
11.77%
Q1
2.23%
Min
-11.93%

CIEN’s Return on Equity of 3.72% is on par with the norm for the Communications Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

APP vs. CIEN: A comparison of their Return on Equity (TTM) against their respective Software and Communications Equipment industry benchmarks.

Net Profit Margin (TTM)

APP

45.72%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

A Net Profit Margin of 45.72% places APP in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.

CIEN

2.46%

Communications Equipment Industry

Max
23.65%
Q3
14.32%
Median
5.31%
Q1
1.45%
Min
-12.72%

CIEN’s Net Profit Margin of 2.46% is aligned with the median group of its peers in the Communications Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.

APP vs. CIEN: A comparison of their Net Profit Margin (TTM) against their respective Software and Communications Equipment industry benchmarks.

Operating Profit Margin (TTM)

APP

52.02%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

An Operating Profit Margin of 52.02% places APP in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

CIEN

4.67%

Communications Equipment Industry

Max
42.27%
Q3
18.90%
Median
6.21%
Q1
2.97%
Min
-20.72%

CIEN’s Operating Profit Margin of 4.67% is around the midpoint for the Communications Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

APP vs. CIEN: A comparison of their Operating Profit Margin (TTM) against their respective Software and Communications Equipment industry benchmarks.

Profitability at a Glance

SymbolAPPCIEN
Return on Equity (TTM)257.74%3.72%
Return on Assets (TTM)42.29%1.87%
Net Profit Margin (TTM)45.72%2.46%
Operating Profit Margin (TTM)52.02%4.67%
Gross Profit Margin (TTM)80.87%41.94%

Financial Strength

Current Ratio (MRQ)

APP

2.74

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

APP’s Current Ratio of 2.74 is in the upper quartile for the Software industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

CIEN

3.40

Communications Equipment Industry

Max
1.72
Q3
1.72
Median
1.46
Q1
1.18
Min
0.93

CIEN’s Current Ratio of 3.40 is exceptionally high, placing it well outside the typical range for the Communications Equipment industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

APP vs. CIEN: A comparison of their Current Ratio (MRQ) against their respective Software and Communications Equipment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

APP

3.01

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

With a Debt-to-Equity Ratio of 3.01, APP operates with exceptionally high leverage compared to the Software industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

CIEN

0.55

Communications Equipment Industry

Max
1.55
Q3
0.92
Median
0.55
Q1
0.30
Min
0.00

CIEN’s Debt-to-Equity Ratio of 0.55 is typical for the Communications Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

APP vs. CIEN: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Communications Equipment industry benchmarks.

Interest Coverage Ratio (TTM)

APP

6.44

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

APP’s Interest Coverage Ratio of 6.44 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.

CIEN

3.66

Communications Equipment Industry

Max
181.73
Q3
113.63
Median
7.59
Q1
3.82
Min
-5.39

In the lower quartile for the Communications Equipment industry, CIEN’s Interest Coverage Ratio of 3.66 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

APP vs. CIEN: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Communications Equipment industry benchmarks.

Financial Strength at a Glance

SymbolAPPCIEN
Current Ratio (MRQ)2.743.40
Quick Ratio (MRQ)2.542.27
Debt-to-Equity Ratio (MRQ)3.010.55
Interest Coverage Ratio (TTM)6.443.66

Growth

Revenue Growth

APP vs. CIEN: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

APP vs. CIEN: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

APP

0.00%

Software Industry

Max
0.08%
Q3
0.03%
Median
0.00%
Q1
0.00%
Min
0.00%

APP currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

CIEN

0.00%

Communications Equipment Industry

Max
3.88%
Q3
2.75%
Median
0.93%
Q1
0.00%
Min
0.00%

CIEN currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

APP vs. CIEN: A comparison of their Dividend Yield (TTM) against their respective Software and Communications Equipment industry benchmarks.

Dividend Payout Ratio (TTM)

APP

0.00%

Software Industry

Max
1.32%
Q3
0.53%
Median
0.00%
Q1
0.00%
Min
0.00%

APP has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

CIEN

0.00%

Communications Equipment Industry

Max
111.16%
Q3
55.91%
Median
28.42%
Q1
0.00%
Min
0.00%

CIEN has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

APP vs. CIEN: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Communications Equipment industry benchmarks.

Dividend at a Glance

SymbolAPPCIEN
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

APP

57.41

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

APP’s P/E Ratio of 57.41 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

CIEN

118.08

Communications Equipment Industry

Max
57.30
Q3
47.92
Median
27.50
Q1
17.89
Min
13.89

At 118.08, CIEN’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Communications Equipment industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

APP vs. CIEN: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Communications Equipment industry benchmarks.

Price-to-Sales Ratio (TTM)

APP

26.25

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

With a P/S Ratio of 26.25, APP trades at a valuation that eclipses even the highest in the Software industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

CIEN

2.91

Communications Equipment Industry

Max
11.03
Q3
5.53
Median
2.20
Q1
0.99
Min
0.40

CIEN’s P/S Ratio of 2.91 aligns with the market consensus for the Communications Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

APP vs. CIEN: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Communications Equipment industry benchmarks.

Price-to-Book Ratio (MRQ)

APP

101.50

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

At 101.50, APP’s P/B Ratio is at an extreme premium to the Software industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

CIEN

3.73

Communications Equipment Industry

Max
9.66
Q3
5.60
Median
3.73
Q1
2.67
Min
0.30

CIEN’s P/B Ratio of 3.73 is within the conventional range for the Communications Equipment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

APP vs. CIEN: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Communications Equipment industry benchmarks.

Valuation at a Glance

SymbolAPPCIEN
Price-to-Earnings Ratio (TTM)57.41118.08
Price-to-Sales Ratio (TTM)26.252.91
Price-to-Book Ratio (MRQ)101.503.73
Price-to-Free Cash Flow Ratio (TTM)48.1826.32